Adriana Resources Inc.

Adriana Resources Inc.

June 23, 2011 17:00 ET

Adriana Update

TORONTO, ONTARIO--(Marketwire - June 23, 2011) - Adriana Resources Inc. ("Adriana" or the "Company") - (TSX VENTURE:ADI) is pleased to announce that the Company resumed diamond drilling on the Lac Otelnuk property on May 12 as part of its 2011 exploration program to increase and upgrade mineral resources on its Lac Otelnuk world-class iron deposit located in the Labrador Trough, Nunavik Quebec. Since the commencement of drilling in 2011, the Company has completed 13 holes. Two of the recent holes were drilled to complete an "in-fill" drilling program started in 2010 on the South Zone of the deposit intended to upgrade a portion of the "indicated mineral resource" to "measured resource".

The Company currently has 2 drill rigs on site and has signed a contract with a drill company for a third drill which is planned to be operational and in the field late July. In addition to completing the in-fill drilling, resource delineation drilling has also commenced on the North Zone of the Lac Otelnuk deposit where 29 widely spaced holes drilled in the 1970s outlined a significant "historical" resource over a strike length of 13 km. Several exploration holes have also been drilled on remote parts of the property for the purpose of better defining the geological stratigraphy and structure of the region for future exploration and site planning. Drilling is scheduled to continue to mid-December.

Bench scale metallurgical testing being carried out at SGS Lakefield has been expanded to include characterization of waste rock and tailings material, and Liquid-Solid separation of waste tailings material. Large diameter (PQ) core drilling is also scheduled for the collection of bulk samples for grindability testing at SGS later in the year.

The Company has engaged Golder Associates to undertake an Environmental and Social Impact Assessment of the Project, and currently has field crews on site to collect environmental baseline information.

The Company has retained Watts, Griffis and McOuat Limited to update the mineral resource estimate to include the results of 42 drill holes completed in 2010 and 2011. Most of these holes are in-fill holes drilled on the South Zone. A total of 121 diamond drill holes totalling 15,280 meters have been drilled since Adriana acquired the Lac Otelnuk Property.

The Company also reports that the negotiations regarding a definitive joint venture agreement ("Joint Venture Agreement") pursuant to a binding framework agreement with WISCO International Resources Development & Investment Limited ("WISCO") are continuing. The Joint Venture Agreement originally targeted for June 30, 2011 has not yet been finalized notwithstanding the best efforts of both parties. While there are few substantive items left to discuss, the size of the proposed investment makes the process a complex and lengthy one requiring detailed vetting and approvals from state agencies. While there can be no assurance that the negotiations will result in an agreement, both parties remain committed to a cooperation agreement to develop the Lac Otelnuk Project. At this time, it is unlikely that the agreement will be concluded before the end of the third quarter of 2011.


Allen J. Palmiere, President and CEO

Certain information regarding the Company, including the completion of the definitive joint venture agreement with WISCO may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties. Certain important risk factors could cause the Company's actual results to differ materially from those expressed or implied by such forward-looking statements including, without limitation, completion of due diligence to the satisfaction of WISCO, approvals of the government of China, approval of the TSX-V, changes in the world wide price of mineral commodities and currency fluctuations, general market conditions, and the uncertainty of future profitability and access to sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and caution should be exercised on placing undue reliance on forward looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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